Infrastructure Bank Legislation Garners Strong Support
Diverse coalition includes Felix Rohatyn, Bernard L. Schwartz, U.S. Chamber of Commerce, SEIU, National Construction Alliance, Building and Construction Trades Department - AFL-CIO, American Society of Civil Engineers, Campaign for America’s Future, Policy Link
Washington, D.C. – Representatives Rosa L. DeLauro (Conn.-3), Keith Ellison (MN-5), Anthony Weiner (NY-9) and Steve Israel (NY-2) introduced the National Infrastructure Development Bank Act of 2009 with strong support from a diverse coalition including, the U.S. Chamber of Commerce; SEIU; National Construction Alliance; Building and Construction Trades Department, AFL-CIO; American Society of Civil Engineers; Campaign for America’s Future; and Policy Link, as well as Felix Rohatyn, investment banker and author of “Bold Endeavors: How Our Government Built America, and Why It Must Rebuild Now;” and Bernard L. Schwartz, Chairman and CEO of BLS Investments.
The National Infrastructure Development Bank Act would fund and create a bank that would direct public and private dollars toward infrastructure projects of national or regional significance – a proposal included in the Obama Administration’s budget, as well as the Budget Resolution.
“By expanding and enhancing existing infrastructure through a National Infrastructure Development Bank we can leverage private sector dollars to invest in our most critical transportation, environmental, energy and telecommunications infrastructure needs,” said Congresswoman DeLauro. “Not only will we create jobs and spur economic growth, but we will make the critical investments necessary to build state of the art infrastructure systems for the 21st century – ensuring we do not again allow our nation's roads, bridges, and electrical grid to reach the deterioration we have seen in recent years.”
“The Interstate 35-W Bridge collapse that occurred in my home town of Minneapolis serves as one of many tragic reminders of the crumbling state of our infrastructure,” said Congressman Keith Ellison. “The National Infrastructure Development Bank puts forth a new model to address this problem. It partners public investment with private capital to develop an infrastructure system that meets the demands of our lives and economy in the 21st Century.”
Rep. Weiner said, “The creation of this infrastructure bank will help us turn potholes into jobs and private ingenuity into public benefit. Congress will no longer be on the sidelines; we’ll be solving this problem.”
“We’ve got hundreds of thousands of bridges and roads that are deficient or obsolete. We’ve slipped from first to fifteenth in the world in broadband deployment. It’s time to regain our global competitiveness and economic supremacy with a real federal investment in infrastructure. A National Infrastructure Development Bank will provide a sustainable source of revenue from unique public private partnerships,” said Rep. Steve Israel. “We can’t wait for another bridge to collapse, or for another hour in rush hour traffic, to dramatically improve our infrastructure.”
The National Infrastructure Development Bank, modeled after the European Investment Bank, would leverage private sector dollars to invest in transportation, environmental, energy and telecommunications infrastructure projects. It would objectively consider the economic, environmental, social benefits and costs of infrastructure projects, as well as other specific criteria, and fund projects of significance. The Bank would provide investment opportunities that would supplement current federal programs creating jobs, spurring economic growth and rebuilding an infrastructure system for the 21st century.
“The National Infrastructure Development Bank Act of 2009 is essential to funding critical infrastructure projects; I strongly support its passage. This legislation will establish an effective, transparent financing entity that can leverage significant private capital for infrastructure projects of regional and national significance. The national development bank will be modeled on institutions—such as the European Investment Bank—that have enabled other countries to create employment and increase their competitiveness by modernizing public infrastructure,” said Felix G. Rohatyn, investment banker and author of “Bold Endeavors: How Our Government Built America, and Why It Must Rebuild Now.” “In fact, former Senator Warren Rudman and I co-chaired a bipartisan commission on infrastructure at the Center for Strategic and International Studies that recommended creation of such a development bank. I urge members of Congress to pass this vital legislation.”
“The Chamber commends Congresswoman DeLauro for recognizing the significant funding and financing challenges facing our nation's infrastructure. An infrastructure bank such as the one proposed by Rep. DeLauro could help create and sustain jobs, leverage private investment, and support maintaining, modernizing and expanding the physical platform of the American economy. We look forward to working with her to further develop this concept,” said Janet Kavinoky, Director, Transportation Infrastructure, U.S. Chamber of Commerce.
“The janitors, nurses, building security, public employee, hospitality and other hardworking members of SEIU know that investing in safe bridges is an investment in safety for our families; that investments in building efficiency are investments in the environment; and that investing in telecommunications is an investment in quality jobs. We look forward to swift, bipartisan passage of this legislation because it is an investment in a stronger economic and American future for generations to come,” said SEIU Secretary-Treasurer Anna Burger
“Congresswoman DeLauro’s legislation addresses America’s extensive infrastructure deficit by calling for the creation of a national infrastructure development bank that would give us an exceptionally productive leveraging tool for the funding of improvement projects. Beyond its obvious benefits, infrastructure investment is the most expedient job creation measure available and a proven economic growth catalyst. I applaud Congresswoman DeLauro’s action and urge passage of the bill,” said Bernard L. Schwartz, Chairman and CEO of BLS Investments.
“America's Building Trades Unions support the action taken by Representative Rosa DeLauro to address the critical state of our nation's physical infrastructure. In its ‘2009 Report Card for America's Infrastructure,’ the American Society of Civil Engineers issued a grade of ‘D’ for our nation's infrastructure, while also projecting a $2.2. trillion investment over five years to conduct the needed repairs. The National Infrastructure Development Bank is a strong first step towards addressing this critical economic, social and national security issue,” stated Mark H. Ayers, President of the Building and Construction Trades Department, AFL-CIO.
According to the American Society of Civil Engineers, the current condition of the infrastructure in the United States earns a grade point average of D and an estimated $2.2 trillion investment is needed over the next 5 years to meet adequate conditions. Moreover, every $1 billion in federal funds invested in infrastructure creates or sustains approximately 47,500 jobs and $6.2 billion in economic activity.
“The creation of a National Infrastructure Development Bank to leverage public funds with private dollars to invest in infrastructure-transportation, environment, energy and telecommunications projects of significance could play a significant role in improving the nation’s infrastructure. While the American Recovery and Reinvestment Act represented a major investment in the nation’s infrastructure, it is not enough. A sustained effort is needed to repair and maintain the economically vital infrastructure systems of the nation. This nation cannot afford to wait much longer to invest significant sums in its infrastructure, and your bill will lead the way,” said Wayne Klotz P.E., D.WRE, F.ASCE, President, American Society of Civil Engineers.
Added Ray Poupore, Executive Vice President, National Construction Alliance II, which is a joint venture between two of the leading construction craft unions, the United Brotherhood of Carpenters and the International Union of Operating Engineers, “We strongly support Representative Rosa DeLauro’s efforts in introducing the “National Infrastructure Development Act of 2009”. Our two unions have worked with her office for a number of years in developing this additional financing mechanism through which badly needed infrastructure projects in transportation, water, energy and telecommunications could be funded. Given the 20% unemployment rate in the construction industry, Representative DeLauro’s infrastructure development bill is timely, and we will aggressively support it through passage into law.”
“We have adopted a short-term ‘pay as you go’ mentality that stops long range investment before it begins. Nowadays, public investment as a percentage of gross domestic product has dropped below 4 percent. Our post-World War II infrastructure is decaying and we aren’t replacing it,” said Robert Borosage, Co-Director, Campaign For America’s Future. “The National Infrastructure Development Bank Act would help solve these problems with long range investments. Infrastructure investments can create jobs in the short term and economic growth in the long term, addressing both our current investment deficit and next decade’s budget deficit at the same time. This bill supports long-term growth that will keep America competitive globally and improve our way of life.”
“PolicyLink applauds Representative DeLauro for her leadership in advancing sustainable financing mechanisms to address the pressing, unmet infrastructure needs of urban and rural communities across the nation,” said Judith Bell- President of PolicyLink. We look forward to working with Representative DeLauro to ensure that this proposal leads to transformative investment in disadvantaged communities that will promote economic growth and opportunity for all.”
The National Infrastructure Development Bank Act of 2009 would:
Create a National Infrastructure Development Bank: Modeled after the European Investment Bank and other development banks around the world, it would include an independent and objective Board of Directors to, among other things, make final infrastructure financing determinations; an Executive Committee to handle the day-to-day operations of the Bank; and Risk Management and Audit Committees to carefully manage risk and monitor the bank’s activities.
Attract Private Investment Toward Critical Infrastructure Projects: The bank Board would have the authority to, among other things, issue “public benefit” bonds; make loans and offer loan guarantees; and purchase and sell infrastructure-related loans and securities on the global capital market.
Depoliticize Infrastructure Investment: The Bank would consider infrastructure projects in the realm of transportation (i.e. highways, transit, inland waterways, rail and air travel), the environment (i.e. drinking and wastewater facilities and hazardous waste facilities); energy (i.e. renewable energy transmission and building efficiency); and telecommunications (i.e. broadband development). The Bank would objectively consider the economic, environmental, social benefits and costs of infrastructure projects, as well as other specific criteria, and fund projects of significance.
Capitalize a Bank: The bank is capitalized with authorized appropriations of $5 billion a year for 5 years as paid in capital, like the Obama budget, and a total of $250 billion in total subscribed capital available from the Treasury if needed.